Sumitomo Metal Mining Co., Ltd.

Business Details

Engages in the exploration, development, production and sale of non-ferrous metal resources both domestically (Hishikari Gold Mine) and overseas (Morenci Copper Mine, USA; Cerro Verde Copper Mine, Peru; Quebrada Blanca Copper Mine, Chile; Cotē Mine, Canada, etc.). Core operations are the mining and sale of gold-silver ore, and the production and sale of copper concentrate and SX-EW copper. The segment has a structure that delivers high profitability during periods of rising copper and gold prices, making it the primary source of profit for the group as a whole.

Recent Overview

Segment profit rose 64.8% year on year on higher copper and gold prices and steady operations at the Cotē Mine

In FY2026 (ending March 2026), Mineral Resources segment revenue rose sharply to ¥302,577 million (up 43.6% year on year), and segment profit rose to ¥167,831 million (up 64.8% year on year). The main driver was the rise in average copper price to $10,816/t (prior period: $9,370/t) and average gold price to $3,939.1/TOZ (prior period: $2,584.7/TOZ). The Cotē Mine achieved production of 12.4t, exceeding plan. Meanwhile, Cerro Verde fell below the prior period due to lower ore grades, and Quebrada Blanca fell below the prior period due to tailings storage facility constraints. In addition, intangible assets and mining rights increased due to the acquisition of an interest in the Winu Copper-Gold Project (Australia). Mineral Resources segment profit for FY2027 (ending March 2027) is forecast at ¥196,000 million, reflecting further profit growth.

Key Products

Growth Drivers

• Rising international copper and gold prices (copper: $10,816/t, gold: $3,939.1/TOZ, both up substantially year on year)
• Stabilization of operations and above-plan production (12.4t) at the Cotē Mine (Canada, 30.0% interest)
• Continued stable operations at the Hishikari Mine (high-grade, low-cost structure, sales volume of 3.5t)
• Continued tightness in copper supply and demand amid expanding AI-related investment and copper ore supply shortages
• Expansion of future production base through acquisition of an interest in the Winu Copper-Gold Project (Australia)
• Structural rise in gold prices driven by geopolitical risk, declining confidence in various currencies, and expectations of US rate cuts
• Expectations of further profit growth based on the FY2027 (ending March 2027) price forecast (copper: $11,000/t, gold: $4,200/TOZ)

Risks

• Risk of fluctuations in non-ferrous metal prices such as copper, gold and nickel (deteriorating profitability when prices fall)
• Foreign exchange rate fluctuation risk (decrease in yen-translated revenue amid yen appreciation)
• Rising trend in production costs at overseas mines (declining ore grades, cost increases due to inflation)
• Risk of production volume constraints at the Quebrada Blanca Copper Mine due to tailings storage facility capacity limitations
• Risk of decreased production volume at the Cerro Verde Copper Mine due to declining ore grades
• Rising resource nationalism, tightening environmental regulations, and increasing difficulty in building relationships with local communities
• Risk to stabilization of operations at new development projects (e.g., Winu) (ramp-up delays, cost overruns)
• Country risk (changes in the political and regulatory environment in Chile, Peru, Canada, Australia, etc.)
• Indirect impact on demand and prices from geopolitical risks such as US tariff policy and Middle East tensions